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EX-32.1 - EXHIBIT 32.1 - DYNASIL CORP OF AMERICAtv493118_ex32-1.htm
EX-31.1B - EXHIBIT 31.1(B) - DYNASIL CORP OF AMERICAtv493118_ex31-1b.htm
EX-31.1A - EXHIBIT 31.1(A) - DYNASIL CORP OF AMERICAtv493118_ex31-1a.htm
10-Q - FORM 10-Q - DYNASIL CORP OF AMERICAtv493118_10q.htm






Patty Kehe

Corporate Secretary

Dynasil Corporation of America

Phone: 617.668.6855


Dynasil Corporation of America Reports

Second Quarter Fiscal 2018 Net Income of $1.3 Million



Newton, MA, May 14, 2018 – Dynasil Corporation of America (NASDAQ: DYSL), a developer and manufacturer of optics and photonics products, optical detection and analysis technology and components for the homeland security, medical and industrial markets, today announced net income of $1.3 million or $0.08 per share for the second quarter of fiscal year 2018.


“I am happy to report revenue in our Optics segment showed an 11% increase for the quarter as compared to the same period last year – the second consecutive quarter of double-digit revenue growth in Optics’ revenue,” said CEO Peter Sulick. “Additionally, this quarter’s results contain a $1.3 million benefit for income taxes as the result our ongoing review for the PATH 2015 federal R&E Tax Credit for the years 2012 thru 2016. We anticipate completing this review by the fiscal year end and we are expecting additional state credits will be determined as well.


“And although our Research segment’s revenue decreased 10% this quarter, as compared to last year, largely due to a delay in commercial revenue, RMD’s commercial revenue shows signs of picking up this quarter, as evidenced by the recently announced new purchase orders from Thermo Fisher Scientific. Overall, our revenue for the quarter was up 2% over the same period last year.”





Certain key metrics by segment for the current quarter and the same quarter last year are presented below: 


Results of Operations for the Three Months Ended March 31, 2018 
   Optics   Contract
   Biomedical   Total 
Revenue  $5,910,000   $4,345,000   $-   $10,255,000 
Gross profit   2,050,000    1,895,000    -    3,945,000 
GM %   35%   44%   -    38%
Operating expenses   1,858,000    1,813,000    194,000    3,865,000 
Operating income (loss)  $192,000   $82,000   $(194,000)  $80,000 


Results of Operations for the Three Months Ended March 31, 2017
   Optics   Contract
   Biomedical   Total 
Revenue  $5,281,000   $4,804,000   $-   $10,085,000 
Gross profit   1,913,000    1,875,000    -    3,788,000 
GM %   36%   39%   -    38%
Operating expenses   1,597,000    1,802,000    392,000    3,791,000 
Operating income (loss)  $316,000   $73,000   $(392,000)  $(3,000)



Net income (loss) attributable to common stockholders was approximately $1.3 million or $0.08 per share for the quarter ended March 31, 2018 and ($0.1) million or ($0.00) per share for the quarter ended March 31, 2017. Dynasil’s provision for income taxes for the second quarter of 2018 was a benefit of $1.3 million as compared to a tax provision of $0.1 million for the same period in fiscal year 2017. The 2018 provision in the second quarter of fiscal year 2018 was the result of a PATH 2015 federal R&E Tax Credit for the years 2012 thru 2016 that we are estimating based on the review we are in the process of conducting.


Conference Call Information

Dynasil will host a conference call for investors and analysts at 5:00 p.m. ET today, Monday, May 14, 2018. The call will be hosted by Chairman, CEO and President Peter Sulick and Chief Financial Officer Robert Bowdring. Those who wish to listen to the conference call can go to the event page or visit the Investor Information section of the Company’s website at The call also may be accessed by dialing (888) 346-2613 or (412) 902-4252. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year.


About Dynasil

Dynasil Corporation of America (NASDAQ: DYSL) develops and manufactures optics and photonics products, optical detection and analysis technology and components for the homeland security, medical and industrial markets. Combining world-class expertise in research and materials science with extensive experience in manufacturing and product development, Dynasil is commercializing products including dual-mode radiation detection solutions for Homeland Security and commercial applications and sensors for non-destructive testing. Dynasil has an impressive and growing portfolio of issued and pending U.S. patents. The Company is based in Newton, MA, with additional operations in MA, MN, NY, NJ and the United Kingdom. More information about the Company is available at





Forward-Looking Statements


This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements regarding future events and our future results are based on current expectations, estimates, forecasts, and projections and the beliefs and assumptions of our management, including, without limitation, our expectations regarding results of operations, our compliance with the financial covenants under our loan agreements with Middlesex Savings Bank and Massachusetts Capital Resource Company, the commercialization of our technology, including the Xcede patch and our dual mode detectors, the expecting timing of the First-in-Human clinical trial of the Xcede patch, the success of efforts to fund Xcede, results of our pre-clinical and planned clinical trials, regulatory approvals, our development of new technologies including at Dynasil Biomedical, the adequacy of our current financing sources to fund our current operations, our growth initiatives, governmental budgetary and funding matters, our capital expenditures and the strength of our intellectual property portfolio. These forward-looking statements may be identified by the use of words such as “plans”, “intends,” “may,” “could,” “expect,” “estimate,” “anticipate,” “continue” or similar terms, though not all forward-looking statements contain such words. The actual results of the future events described in such forward looking statements could differ materially from those stated in such forward looking statements due to a number of important factors. These factors that could cause actual results to differ from those anticipated or predicted include, without limitation, our ability to develop and commercialize our products, including obtaining regulatory approvals, the size and growth of the potential markets for our products and our ability to serve those markets, the rate and degree of market acceptance of any of our products, general economic conditions, costs and availability of raw materials and management information systems, our ability to obtain and maintain intellectual property protection for our products, clinical results of Xcede’s programs which may not support further development, competition, the loss of key management and technical personnel, our ability to obtain timely payment of our invoices to governmental customers, changing priorities or reductions in government spending, litigation, the effect of governmental regulatory developments, the availability of financing sources, our ability to comply with our debt obligations, our ability to deleverage our balance sheet, our ability to identify and execute on acquisition opportunities and integrate such acquisitions into our business, and seasonality, as well as the uncertainties set forth in the Company’s Annual Report on Form 10-K, filed on December 20, 2017, including the risk factors contained in Item 1A, and from time to time in the Company's other filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.





Dynasil Corporation of America and Subsidiaries

Consolidated Balance Sheets (Unaudited)


   March 31, 2018   September 30, 2017 
Current Assets          
Cash and cash equivalents  $1,130,000   $2,415,000 
Accounts receivable, net   4,276,000    3,407,000 
Costs in excess of billings and unbilled receivables   846,000    1,317,000 
Inventories, net of reserves   4,638,000    4,326,000 
Prepaid expenses and other current assets   686,000    973,000 
Total current assets   11,576,000    12,438,000 
Property, Plant and Equipment, net   7,551,000    7,032,000 
Other Assets          
Intangibles, net   997,000    987,000 
Deferred tax asset   3,351,000    2,642,000 
Goodwill   6,009,000    5,940,000 
Security deposits   33,000    58,000 
Total other assets   10,390,000    9,627,000 
Total Assets  $29,517,000   $29,097,000 
Current Liabilities          
Current portion of long-term debt  $1,896,000   $2,007,000 
Capital lease obligations, current   62,000    91,000 
Accounts payable   1,744,000    2,380,000 
Deferred revenue   126,000    129,000 
Accrued expenses and other liabilities   2,745,000    2,667,000 
Total current liabilities   6,573,000    7,274,000 
Long-term Liabilities          
Long-term debt, net of current portion   1,172,000    1,045,000 
Capital lease obligations, net of current portion   61,000    81,000 
Deferred tax liability, net   244,000    234,000 
Other long-term liabilities   164,000    38,000 
Total long-term liabilities   1,641,000    1,398,000 
Stockholders' Equity          
Dynasil stockholders' equity   19,948,000    18,971,000 
Noncontrolling interest   1,355,000    1,454,000 
Total stockholders' equity   21,303,000    20,425,000 
Total Liabilities and Stockholders' Equity  $29,517,000   $29,097,000 





Dynasil Corporation of America

Consolidated Statement of Operations and Comprehensive Income (Loss)


   Three Months Ended   Six Months Ended 
   March 31,   March 31, 
   2018   2017   2018   2017 
Net revenue  $10,255,000   $10,085,000   $19,443,000   $19,228,000 
Cost of revenue   6,310,000    6,297,000    11,958,000    11,915,000 
Gross profit   3,945,000    3,788,000    7,485,000    7,313,000 
Operating expenses:                    
Sales and marketing   388,000    328,000    667,000    593,000 
Research and development   215,000    335,000    524,000    531,000 
General and administrative   3,262,000    3,128,000    6,418,000    6,115,000 
Total operating expenses   3,865,000    3,791,000    7,609,000    7,239,000 
Income (loss) from operations   80,000    (3,000)   (124,000)   74,000 
Interest expense, net   45,000    45,000    88,000    112,000 
Income (loss) before taxes   35,000    (48,000)   (212,000)   (38,000)
Income tax (benefit)   (1,255,000)   71,000    (595,000)   (2,658,000)
Net income (loss)   1,290,000    (119,000)   383,000    2,620,000 
Less: Net loss attributable to noncontrolling interest   (33,000)   (64,000)   (108,000)   (133,000)
Net income (loss) attributable to common stockholders  $1,323,000   $(55,000)  $491,000   $2,753,000 
Net income (loss)  $1,290,000   $(119,000)  $383,000   $2,620,000 
Other comprehensive income (loss):                    
Foreign currency translation   222,000    65,000    257,000    (230,000)
Total comprehensive income (loss)   1,512,000    (54,000)   640,000    2,390,000 
Less: comprehensive income (loss) attributable to noncontrolling interest   (33,000)   (64,000)   (108,000)   (133,000)
Total comprehensive income (loss) attributable to common stockholders  $1,545,000   $10,000   $748,000   $2,523,000 
Basic net income (loss) per common share  $0.08   $(0.00)  $0.03   $0.16 
Diluted net income (loss) per common share  $0.08   $(0.00)  $0.03   $0.16 
Weighted average shares outstanding                    
Basic   17,133,468    16,886,628    17,090,530    16,847,679 
Diluted   17,133,468    16,886,628    17,090,530    16,847,679